Asian stock markets have opened on a mixed note. Stock markets in South Korea (down 0.2%), China (down 0.2%) and Hong Kong (down 0.5%) are trading weak whereas Japan (up 1.25%) and Indonesia (up 0.5%) are trading in the green. The Indian stock markets have the opened day in red. Stocks in the realty and IT are up where as FMCG and auto stocks are in the red.
The BSE-Sensex is down by 26 point (0.1%) and the NSE-Nifty is down by around 6 points (0.1%). Midcap and small cap stocks are trading in the green, with the BSE Midcap up by 0.1% and BSE Small cap up 0.3%. The rupee is trading at 44.64 to the US dollar.
Tyre manufacturer, Apollo Tyres announced a plan for expanding the capacity by 3 times in next 1 year. This will cost the company around Rs 4.5 bn. The company sees its sales increasing to $250 mn in three years. Apollo's Middle Eastern arm, will try to increase its business in Turkey and in the company will have an office in the country. From the same location it will also try to penetrate in the other markets around Turkey. The entire demand of that will be catered by Apollo India. Out of the total group revenue of $2 bn, more than 60% comes from the Indian operations. Some of the other countries include South Africa and Netherlands. The Chief of Indian operations further added that Apollo India was only serving the West Asian markets directly from India. But now the company has an office and warehouse in Dubai for better supply chain management and after sales service. The stock of Apollo Tyres is currently trading in the green.
Power stocks have opened the day in the red with Torrent Power and Tata Power trading weak. However, Lanco Infra is trading in the red. Coal India's failure to meet its coal production targets has caused acute supply problems for the user industries. The coal shortage is attributable to lower production due to strict environmental norms. The state-owned coal supplier has tweaked a clause in its fuel supply agreements in order to avoid penalty for failing to supply the agreed quantity. Now, it has to ensure a minimum supply of just 50% to avoid penalties. Earlier, the trigger point for the penalty was 90%. Some of the major consumers of coal such as the sponge iron industry have pointed out that apart from supply shortages, the quality of the coal is poorer as well. They are also complaining that the coal major is reserving a much higher quantity of coal for e-auctions. The coal demand-supply gap is estimated to reach 137 m tonnes in 2011-12.